Grid computing can meet computational demands and offers a promising resource utilization approach. However, little research details the drivers of and obstacles to adoption of this technology. Institutional and organizational capability theory suggests an adoption model that accounts for inter- and intra-organizational influences. An empirical study with 233 high-ranking IT executives reveals that adoption results from social contagion, while organizational capabilities such as trust, firm innovativeness,
tendency to outsource, and IT department size, influence adoption from an intra-organizational perspective. The findings show that mimetic pressures and trust play major roles in adoption processes,
which differentiates grid computing from other inter-organizational systems.